U.S. patent application number 11/096947 was filed with the patent office on 2006-07-06 for method and system for creating a purchase suggesting list retailers.
This patent application is currently assigned to Inventec Corporation. Invention is credited to Chia-Chun Lee, Win-Harn Liu, Xiao-Ling Liu, Jeff Song.
Application Number | 20060149639 11/096947 |
Document ID | / |
Family ID | 36641838 |
Filed Date | 2006-07-06 |
United States Patent
Application |
20060149639 |
Kind Code |
A1 |
Liu; Xiao-Ling ; et
al. |
July 6, 2006 |
Method and system for creating a purchase suggesting list
retailers
Abstract
A system for generating a purchase suggestion list is proposed,
comprising: a supplier enterprise resource planning (ERP) system
that regularly inputs data of past orders from each of its retail
customers into the order database, a retailer computer system
regularly that inputs the quantity of each inventory into the
inventory database, a data input module for manually inputting the
safety margin and purchasing time period, a data storage module to
read the order and inventory information, a calculating module for
calculating the suggested quantity of each product for purchase,
which is also manually adjustable by the inventory management
staff, to create a purchase suggesting list, and a data transfer
module that transfers this purchase suggestion list to the retailer
to make final modifications or grant approval so that a final order
can be made under the mutual agreement based on the suggestion
purchase list. The present invention also proposes a method for
generating a purchase suggestion list.
Inventors: |
Liu; Xiao-Ling; (Taipei,
TW) ; Lee; Chia-Chun; (Taipie, TW) ; Song;
Jeff; (Taipei, TW) ; Liu; Win-Harn; (Taipei,
TW) |
Correspondence
Address: |
EDWARDS & ANGELL, LLP
P.O. BOX 55874
BOSTON
MA
02205
US
|
Assignee: |
Inventec Corporation
Taipei
TW
|
Family ID: |
36641838 |
Appl. No.: |
11/096947 |
Filed: |
March 31, 2005 |
Current U.S.
Class: |
705/14.4 ;
705/26.82 |
Current CPC
Class: |
G06Q 30/02 20130101;
G06Q 10/06 20130101; G06Q 30/0241 20130101; G06Q 30/0637 20130101;
G06Q 10/087 20130101 |
Class at
Publication: |
705/026 |
International
Class: |
G06Q 30/00 20060101
G06Q030/00 |
Foreign Application Data
Date |
Code |
Application Number |
Dec 31, 2004 |
TW |
093141837 |
Claims
1. A system for creating a purchase suggestion list, established
through a connection between a supplier's enterprise resource
planning (ERP) system and one or more retailers' computer systems
via a network system, the system comprising: an order database, for
storing order related data including at least names and quantity of
products to be ordered; a purchase suggestion database, for storing
purchase suggestion data including at least a safety margin and a
purchasing time period; a data input module, for inputting the
safety margin and the purchasing time period into the purchase
suggestion database; an inventory database, for storing inventory
related data including at least names and quantity of products to
be ordered; a calculating module for reading order related data
stored in the order database including the names and quantity of
the product to be ordered from the order database, the value of the
safety margin and the purchasing time period from the purchase
suggestion database, and the quantity of inventory from the
inventory database, in order to calculate a suggested purchase
quantity of each product for each retailer; and a data transfer
module, for transferring the suggested quantity of each product to
the corresponding retailer computer system.
2. (canceled)
3. The system of claim 1, wherein the order database is composed of
order data proposed by each retailer, input through the supplier
enterprise resource planning (ERP) system into the order
database.
4. The system of claim 1, wherein the inventory database is
composed of the quantity of each inventory in each warehouse for
each retailer, input through the retailer computer system.
5. The system of claim 1, wherein the suggested quantity of each
product is obtained by adding up all the purchase quantity within
the predetermined time period, then dividing the sum of the
purchase quantity by the number of days in the predetermined time
period, and then multiplying by the purchase time period and the
safety margin, followed by subtracting the quantity of each
inventory in the inventory database, thereby obtaining a final
suggested quantity for each product.
6. The system of claim 1, wherein the suggested quantity of each
product can be stored in the purchase suggestion database.
7. The system of claim 1, wherein the retailer computer system can
make modifications to the suggested quantity of each product for
purchase.
8. The system of claim 1, wherein the retailer computer system can
approve the suggested quantity of each product for purchase and
create a final order.
9. The system of claim 1, wherein the data transfer module farther
comprises transferring modified suggested quantity of each product
for purchase back to the supplier's enterprise resource planning
(ERP) system.
10. The system of claim 9, wherein the supplier enterprise resource
planning (ERP) system can make further modifications to the
suggested quantity of each product for purchase already modified by
the retailers computer system.
11. The purchase suggestion system of claim 9, wherein the supplier
enterprise resource retailer's computer system can approve the
suggested quantity of each product for purchase modified by the
retailer's computer system and create a final order.
12. A method of creating the purchase suggestion list, established
through a connection between a supplier's enterprise resource
planning (ERP) system and one or more retailers' computer systems
via a network system, comprising the steps of: storing order
related data including at least the name and quantity of the
product to be ordered into an order database; storing inventory
related data including at least the name and quantity of the
product to be ordered into an inventory database; storing purchase
suggestion data including at least values of a safety margin and a
purchasing time period into a purchase suggestion database; reading
order related data, including the name and quantity of the product
to be ordered from the order database, the value of the safety
margin and the purchasing time period from the purchase suggestion
database, and the quantity of inventory from the inventory
database, in order to calculate a suggested quantity of each
product for purchase for each retailer; storing the suggested
quantity of each product in the purchase suggestion database; and
transferring the suggested quantity of each product to the
corresponding retailer's computer system.
13. The method of claim 12, wherein the order related data is input
through the supplier's enterprise resource planning (ERP)
system.
14. The method of claim 12, wherein the inventory related data is
input through the retailer's computer system.
15. The method of claim 12, wherein the suggested quantity of each
product is obtained by adding up all purchase quantity within a
predetermined time period, then dividing the sum of purchase
quantity by the number of days in the predetermined time period,
then multiplying by the purchase time period and the safety margin,
and then subtracting the quantity of each inventory in the
inventory database, thereby obtaining a final suggested quantity
for each product.
16. (canceled)
17. The method of claim 12, further comprising making modifications
to the suggested quantity of each product for purchase through the
retailer's computer system.
18. The method of claim 12, further comprising an approval cycle
for the suggested quantity of each product for purchase to create a
final order through the retailer's computer system.
19. The method of claim 12, further comprising the transfer of the
modified suggested quantity of each product of purchase back to the
supplier's enterprise resource planning (ERP) system.
20. The method of claim 12, further comprising making further
modifications to the suggested quantity of each product for
purchase modified by the retailer computer system through the
supplier's enterprise planning (ERP) system.
21. The method of claim 12, further comprising an approval of the
suggested quantity of each product of purchase to create a final
order through the retailer's computer system.
22. A system for creating a purchase suggestion list, established
through a connection between a supplier's enterprise resource
planning (ERP) system and one or more retailers' computer systems
via a network system, the system comprising: an order database, for
storing order related data including at least names and quantity of
products to be ordered; a purchase suggestion database, for storing
purchase suggestion data including at least a safety margin and a
purchasing time period; an inventory database, for storing
inventory related data including at least names and quantity of
products to be ordered; a calculating module for reading order
related data stored in the order database including the names and
quantity of the product to be ordered from the order database, the
value of the safety margin and the purchasing time period from the
purchase suggestion database, and the quantity of inventory from
the inventory database, in order to calculate a suggested purchase
quantity of each product for each retailer; and a data transfer
module, for transferring the suggested quantity of each product to
the corresponding retailer computer system and storing the
suggested quantity of each product in the purchase suggestion
database.
23. The system of claim 22, further comprising a data input module
for inputting the safety margin and the purchasing time period into
the purchase suggestion database.
24. The system of claim 22, wherein the order database is composed
of order data proposed by each retailer, input through the supplier
enterprise resource planning (ERP) system into the order
database.
25. The system of claim 22, wherein the inventory database is
composed of the quantity of each inventory in each warehouse for
each retailer, input through the retailer computer system.
26. The system of claim 22, wherein the suggested quantity of each
product is obtained by adding up all the purchase quantity within
the predetermined time period, then dividing the sum of the
purchase quantity by the number of days in the predetermined time
period, and then multiplying by the purchase time period and the
safety margin, followed by subtracting the quantity of each
inventory in the inventory database, thereby obtaining a final
suggested quantity for each product.
27. The system of claim 22, wherein the retailer computer system
can make modifications to the suggested quantity of each product
for purchase.
28. The system of claim 22, wherein the retailer computer system
can approve the suggested quantity of each product for purchase and
create a final order.
29. The system of claim 22, wherein the data transfer module
further comprises transferring modified suggested quantity of each
product for purchase back to the supplier's enterprise resource
planning (ERP) system.
30. The system of claim 29, wherein the supplier enterprise
resource planning (ERP) system can make further modifications to
the suggested quantity of each product for purchase already
modified by the retailer's computer system.
31. The purchase suggestion system of claim 29, wherein the
supplier enterprise resource retailer's computer system can approve
the suggested quantity of each product for purchase modified by the
retailer's computer system and create a final order.
Description
FIELD OF THE INVENTION
[0001] The present invention relates to a method and system for
creating purchase suggestion lists, and more particularly, to a
method and a system for creating purchase suggestion lists targeted
at a supplier's retail customers.
BACKGROUND OF THE INVENTION
[0002] Retailers often manually place an order for items when
inventory is low in stock. This process of manually ordering not
only wastes human resources in spent time checking the inventory
and ordering items, but also results in ordering mistakes due to
human error, thus delaying the delivery of new stock and leading to
lost revenue due to stock insufficiency. If the ordering process
could be automated according to how much inventory was on hand at a
given time, then, whenever the inventory number fell below a
predetermined number, the system could automatically place an order
to the supplier, thus avoiding the expenditure of human resources
and eliminating human error. However, this kind of automated system
also has a weakness in that, since the ordering is not fixed to a
certain time period, there is a possibility that the supplier may
not have enough inventory in stock to fill the order in a timely
fashion.
[0003] After an order is placed by a retailer, a supplier delivers
the goods accordingly; however, since it is difficult for the
supplier to actually estimate the time and how many products a
retailer may order, it is difficult to keep track of the outgoing
stock and therefore get a hold on how many products should be
manufactured.
SUMMARY OF THE INVENTION
[0004] A primary objective of the present invention is to provide a
method and a system for sending a purchase suggestion list to the
retailers and this purchase suggestion list can then be modified
and approved by each retailer to produce a final purchase list,
allowing the supplier to effectively get control of the ordering
time and knowledge of the numbers of products that will be
ordered.
[0005] In order to achieve the foregoing objective, the system for
creating a purchase suggestion list for retailers proposed by the
present invention is established through a connection from a
supplier enterprise resource planning (ERP) system to at least one
retailer computer system through a computer network system such as
the Internet for regularly offering each corresponding retailer a
purchase suggestion list. Such lists are then modified and approved
by each retailer to generate final purchase lists. The system of
creating these purchase suggestion lists comprises: a computer
network system, such as the Internet or on intranet; supplier
enterprise resource planning (ERP) system for handling business
activity such as issuing catalogs of goods to retailers, inventory
management, and shipping; a retailer system for handling business
activity such as purchasing, sales, and inventory management; an
ordering database for storing data such as order numbers, retailer
numbers, supplier numbers, catalog numbers of goods, quantities of
products ordered, warehouse numbers, and so on; a purchasing
suggestion list database for storing information such as purchasing
suggestion list numbers, retailer numbers, supplier numbers,
purchase time periods, safety margins, and suggesting the quantity
of product that should be purchased, in which the suggested
quantity for purchase is further classified into automatic
suggestions generated by the system and manual suggestions input by
the inventory staff; an inventory database for storing data such as
warehouse numbers and catalog numbers; a data storing module for
saving data such as in an order database, a purchasing suggestion
database, and an inventory database; a data input module, for the
inventory staff to input data related to the ordering time period,
safety margins, and the suggested quantity of product to be
purchased; a calculating module for calculating the quantity of
each suggested product to be purchased for each retailer and
automatically generating a purchasing suggestion list; and a data
transferring module for transferring the purchasing suggestion list
to each retailer as well as transferring the modified purchasing
order back to the supplier.
[0006] The method for generating purchasing suggestion lists of the
invention comprises the following steps: regularly transferring
orders from each retailer into an ordering database through an
enterprise resource planning (ERP) system; creating a purchasing
suggestion list including the quantity of each product that is
suggested for each retailer to purchase, calculated from input
parameters such as safety margins, purchase time periods,
purchasing history and inventory data, or manually input by the
inventory staff; saving the purchasing suggestion list for each
retailer into the purchasing suggestion database and sending the
purchasing suggestion lists to corresponding retailers, which are
then either approved or modified by the retailers and transferred
back to the supplier enterprise resource planning (ERP) system;
whereupon, if the supplier approves the modified purchasing
suggestion list, a final purchasing list is generated according to
each purchasing suggestion list and saved into the order database,
but if the supplier makes some further modifications to the
purchasing suggestion list, then the purchasing suggestion list is
sent back to the corresponding retailer computer system for a
second-round of confirmation until both sides have reached
agreement.
[0007] In summary, the method and system for creating purchasing
suggestion lists comprises: a supplier enterprise resource planning
(ERP) system that regularly inputs data of past orders from each of
its retail customers into the order database, a retailer computer
system regularly that inputs the quantity of each inventory into
the inventory database, a data input module for manually inputting
the safety margin and purchasing time period, a data storage module
to read the order and inventory information, a calculating module
for calculating the suggested quantity of each product for
purchase, which is also manually adjustable by the inventory
management staff, to create a purchase suggesting list, and a data
transfer module that transfers this purchase suggestion list to the
retailer to make final modifications or grant approval so that a
final order can be made under the mutual agreement based on the
suggestion purchase list.
BRIEF DESCRIPTION OF THE DRAWINGS
[0008] The present invention can be more fully understood by
reading the following detailed description of the preferred
embodiments, with reference made to the accompanying drawings,
wherein:
[0009] FIG. 1 is a schematic block diagram showing the basic
assembly of the system for creating a purchasing suggestion list of
the present invention; and
[0010] FIG. 2 is a schematic flow chart, showing procedural steps
of a method of creating a purchasing suggestion list, in accordance
with the invention.
DETAILED DESCRIPTION OF THE PRFERRED EMBODIMENTS
[0011] FIG. 1 is a schematic block diagram showing the basic
assembly of the system for creating a purchasing suggestion list of
the invention. As shown in the drawing, the system of creating a
purchasing suggestion list of the invention comprises: order
database 11, purchasing suggestion database 12, inventory database
13, data storing module 14, data input module 15, calculating
module 16, data transfer module 17, supplier enterprise resource
planning (ERP) system 18, retailer computer system 19 (19a, 19b and
19c, in which retailer computer system 19a is used to exemplify the
preferred embodiments of the invention) and a computer network 20
such as the Internet or intranet.
[0012] Supplier enterprise resource planning (ERP) 18 comprises
complete information in regard to the assets of the supplier,
manufacturing, finance, and sales of the supplier for handling
business activities such as issuing catalogs of goods to the
retailers, receiving orders, and sales.
[0013] Retailer computer system 19a comprises information about the
purchases, finance and sales of the retailer, for handling business
activities such as purchasing, sales, customer management,
warehouse management, payment management and statistics.
[0014] Order database 11 comprises order data such as order number,
retailer number, supplier number, catalog number, quantity of
purchase, and warehouse number, which are input regularly from the
retailer order into the order database through the enterprise
resource planning system in order for the system to automatically
suggest a purchasing quantity for each supplied product for the
retailers, or manually input by the inventory management staff.
[0015] Inventory database 13 comprises inventory information such
as warehouse number, catalog number, and quantity of the inventory,
each of which is input regularly to the inventory database 13
through the retailer computer system in order for the system to
automatically suggest a purchase quantity of each product supplied
to the retailer.
[0016] Data storage module 14 is used to save relevant data from
order database 11, purchasing suggestion database 12, and inventory
database 13 for the system to automatically create a suggested
purchase quantity for each product for each retailer, which is then
saved into the purchasing suggestion database 12.
[0017] Data input module 15 allows the inventory management staff
to set parameters, such as purchasing time periods and safety
margins for the system to automatically create a suggested purchase
quantity for each product for each retailer as well as allowing the
inventory management staff to manually input the suggested quantity
of each purchasing product for each retailer.
[0018] Calculating module 16 is used to read the past 3 months
transaction history of the retailer including the quantity of each
ordered product in the order database 11, purchase time period, and
safety margin from the purchase suggesting database 12, and the
quantity of inventory in stock (that is the total number of the
inventory in all warehouses, if more than one warehouse), and using
the following formula to calculate a suggested quantity for each
product for the retailers. Quantity of suggested purchase=total
quantity of purchase in a predetermined period/predetermine time
period*purchasing time period*safety margin-quantity of the
inventory. In general the predetermined time period is 3 months.
For example, the quantity of suggested purchase for a product for a
retailer can be obtained by adding up the total quantity of
purchase by the retailer over the past 3 months, divided by the
number of days in those 3 months, multiplied by the purchasing time
period and safety margin, and followed by deducting the total
quantity of existing inventory as indicated in the inventory
database 13.
[0019] Data transfer module 17 is used to transfer purchase
suggestion lists (automatically obtained through calculating module
16 or manually input by inventory management staff through data
input module 15) to each retailer computer system for the retailers
to either approve or modify and transfer the modified or approved
purchase suggesting list back to the supplier enterprise resource
planning (ERP) system until both sides have come to an agreement on
the quantity of the purchase.
[0020] FIG. 2 is a schematic flow chart showing the procedural
steps of a method of creating a purchasing suggestion list of the
invention. As shown in the drawing, in step S1, the details of the
past orders from each retailer, such as order number, retailer
number, catalog number, quantity and unit of the purchase,
warehouse number, and so on, are regularly input into the order
database via the supplier's ERP system 18 in order for the system
to collect data to allow it to automatically suggest a purchasing
quantity for each product supplied to each retailer.
[0021] In step S2, inventory information, such as warehouse number,
catalog number, and quantity of inventory in stock, is regularly
input into the inventory database 13 via the retailer computer
system 19a for the purchase suggesting system 10 to create a
suggested quantity of each product for the retailers.
[0022] In step S3, data input module 15 is used to set parameters,
such as a safety margin and purchasing time period for each product
supplied to a retailer, and, using the data storage module 14, save
the values of these parameters into the purchase suggestion
database 12 to allow the purchase suggestion system 10 to
automatically create a suggested quantity for each product for the
retailers.
[0023] Then, in step S4, data storage module 14 reads the past
transactions for the orders of each retailer stored in the order
database 11 including the quantity of each product being purchased
over the past 3 months, purchasing time period, and a safety margin
stored in the purchasing suggestion database 12, and also reads the
quantity of the inventory in stock stored in the inventory database
13 (total number of the inventory in all warehouses for each
retailer) and, using the following formula, calculates a suggested
quantity for each product-for the retailers: quantity suggested for
purchase=total quantity of purchase in a predetermined
period/predetermined time period*purchasing time period*safety
margin-quantity of the inventory. In general the predetermined time
period is 3 months. For example, the quantity of a product
suggested for purchase for a retailer can be obtained by adding up
the total quantity of purchase by the retailer over the past 3
months, divided by the number of days in the 3 months and
multiplied by the desired purchasing time period and a safety
margin, and then subtracting the quantity of each inventory in the
inventory database to obtain the final suggested amount.
[0024] This suggested quantity for each product for the retailer
then gives rise to a purchase suggestion list which can be also
manually input by the inventory management staff.
[0025] In step S6, the data storage module 14 reads the information
in the purchase suggestion list for each retailer, including
retailer number, catalog number, suggesting and quantity of each
product, stored in the purchase suggesting database 12, and then
transfer the suggestion list to the retailer computer system 19a
according to the retailer number, for each retailer to approve or
modify the purchase suggestion list.
[0026] Next, in step S7, each retailer decides whether they want to
make modifications to the purchase suggestion list, and, if the
retailer approves the purchase suggestion list without making any
modification, the method proceeds directly to step S8, but, if the
retailer wishes to modify the details of the purchase suggestion
list, a staff member from the retailer then re-enters the catalog
number or/and quantity of the product they want to order using the
data input module, before the method proceeds to step S9.
[0027] In the step S8, approval by the retailer already secured,
the purchase suggestion list is input into the order database 11 of
the supplier according to the supplier number written on the
purchase suggestion list, and an automatic order is then
generated.
[0028] In step S9, data storage module 14 reads the modified
information of the purchase suggestion list, including supplier
number, catalog number and the suggested quantity of purchase, and
the data transfer module 17 then transfers the purchase suggestion
list modified by the retailer to the supplier's ERP system 18
according to the supplier number for the supplier to further make
modifications and approve the information on the purchase
suggestion list.
[0029] Finally, in step S10, if the supplier approves the purchase
suggestion list without making any modification, then the process
goes to step S8. On the contrary, if the supplier wishes to modify
the details of the purchase suggestion list, a staff member from
the supplier then re-enters the catalog number or/and quantity of
the products that they are prepared to sell using the data input
module 15, and then the modified purchase suggestion list is then
saved in the purchase suggestion database 12 using the data storage
module 14, followed by the method returning to step S6 where the
purchase suggesting list is transferred once again to the retailer
computer system.
[0030] In summary, the method and system of creating a purchase
suggestion list comprises: a supplier enterprise resource planning
(ERP) system that regularly inputs data of past orders from each of
its retail customers into the order database, a retailer computer
system regularly that inputs the quantity of each inventory into
the inventory database, a data input module for manually inputting
the safety margin and purchasing time period, a data storage module
to read the order and inventory information, a calculating module
for calculating the suggested quantity of each product for
purchase, which is also manually adjustable by the inventory
management staff, to create a purchase suggesting list, and a data
transfer module that transfers this purchase suggestion list to the
retailer to make final modifications or grant approval so that a
final order can be made under the mutual agreement based on the
suggestion purchase list.
[0031] The invention has been described using exemplary preferred
embodiments. However, it is to be understood that the scope of the
invention is not limited to the disclosed embodiments. On the
contrary, it is intended to cover various modifications and similar
arrangements. The scope of the claims, therefore, should be
accorded the broadest interpretation so as to encompass all such
modifications and similar arrangements.
* * * * *